The economy of any country is involved with the industries there and the different businesses relating to trade and finance. Malaysia might be one of the few countries who were able to boost their industry sector through many different developments and investments by the government and foreign hands and bodies.
However, recent news in the country reveal that the prices for basic building materials have been increasing to very high numbers making it unaffordable. This was observed through the rise of cement prices to almost 40%. This concern has been sent directly to the Finance Ministry to help make a move to solve the problem. Complications from this will lead to an increase in the real estate prices and Housing developments which will affect the whole country in turn.
This was commented on by Datuk Toh Chin which is the chairman of Real Estate and Housing Developers’ Association Penang chapter who said, “We cannot increase the prices now. After listening to the business communities here, we are told that the price hike will create a chain effect, resulting in changes in prices for development projects involving roads, houses and factories. About 85% of the cement supply comes under one company and this can negatively impact the industries. There is no reason for such a hike. While the industry has been absorbing these cost increases, cement prices in Peninsular Malaysia have been on a downward trend since 2016 and has reached a level that is not sustainable. Collectively, the cement industry provides hundreds of thousands of jobs directly and indirectly.”